Benjamin and Megan have owned and managed a range of businesses and have experience in reviewing...

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Benjamin and Megan have owned and managed a range of businesses and have experience in reviewing and using the financial reports you have generated. Due to time pressures, they are paying your firm to produce a monthly report discussing the performance of their product lines (inventory items) for their first month of operation. To address this requirement, you are required to prepare an Executive Summary to be included with the July 2023 reports. Your executive summary should address the following: 1. Explain the main advantages of using an Accounting Information System such as "Xero" for a start- up business such as "B&M". 2. Interpret the relative performance for each of their product lines as well as comment on the profitability, liquidity and financial stability of B&M. Item Name Date A1001 - Backpacks Opening Balance Movement Closing Balance A1003 - Hats Opening Balance Movement Closing Balance C1001 - Tops Opening Balance Movement Closing Balance C1004 - Jumper Opening Balance Movement Closing Balance 1 Setup Guide ? Source Reference Contact Description Total (6,565.00) (2,000.00) (900.00) (660.00) (10,125.00) Unit Cost Price Unit Sale Price Value Movement 1,750.00 (1,625.00) 125.00 1,050.00 (525.00) 525.00 1,800.00 (600.00) 1,200.00 1,430.00 (440.00) 990.00 (3,190.00) QoH Movement 140 -130 10 100 -50 50 90 -30 60 65 -20 45 -230 Margin Profit per Item Inventory Account 38.00 29.50 20.00 11.00 98.50 For the period 1 July 2023 to 30 July 2023 Item Code 650 - Inventory-Accessories A1002 Sunglasses A1003 A1001 Total 650 - Inventory- Accessories C1002 C1001 660 - Inventory-Clothing C1003 Shorts C1004 Item Name Total 660 - Inventory- Clothing 1 Setup Guide Hats Backpacks Pants Tops Jumper ? Opening Balance Purchases 5,400.00 3,675.00 6,875.00 15,950.00 3,600.00 4,400.00 3,000.00 COGS 3,000.00 2,625.00 5,125.00 10,750.00 1,620.00 4,400.00 1,200.00 5,500.00 4,510.00 16,500.00 11,730.00 32,450.00 22,480.00 Adjustments Closing Balance 2,400.00 Sales 1,050.00 10,000.00 11,250.00 8,250.00 1,800.00 1,750.00 20,705.00 15,580.00 1,980.00 2,430.00 990.00 5,200.00 41,955.00 31,205.00 Profit 1,800.00 7,375.00 6,765.00 6,600.00 2,200.00 9,970.00 59,550.00 810.00 600.00 2,255.00 4,770.00 17,595.00 5,865.00 37,070.00 Quantity Purchased 450 350 550 1350 200 200 150 250 800 2150 Quantity Sold 250 250 410 910 90 60 205 555 Inventory Type 1465 Tracked 200 Tracked Tracked Tracked Tracked Tracked Tracked Sales Account 240 - Sales- Accecories 240 - Sales- Accecories 240 - Sales- Accecories 240 - Sales- Accecories 250 - Sales- clothing 250 - Sales- clothing 250 - Sales- clothing Benjamin and Megan have owned and managed a range of businesses and have experience in reviewing and using the financial reports you have generated. Due to time pressures, they are paying your firm to produce a monthly report discussing the performance of their product lines (inventory items) for their first month of operation. To address this requirement, you are required to prepare an Executive Summary to be included with the July 2023 reports. Your executive summary should address the following: 1. Explain the main advantages of using an Accounting Information System such as "Xero" for a start- up business such as "B&M". 2. Interpret the relative performance for each of their product lines as well as comment on the profitability, liquidity and financial stability of B&M. Item Name Date A1001 - Backpacks Opening Balance Movement Closing Balance A1003 - Hats Opening Balance Movement Closing Balance C1001 - Tops Opening Balance Movement Closing Balance C1004 - Jumper Opening Balance Movement Closing Balance 1 Setup Guide ? Source Reference Contact Description Total (6,565.00) (2,000.00) (900.00) (660.00) (10,125.00) Unit Cost Price Unit Sale Price Value Movement 1,750.00 (1,625.00) 125.00 1,050.00 (525.00) 525.00 1,800.00 (600.00) 1,200.00 1,430.00 (440.00) 990.00 (3,190.00) QoH Movement 140 -130 10 100 -50 50 90 -30 60 65 -20 45 -230 Margin Profit per Item Inventory Account 38.00 29.50 20.00 11.00 98.50 For the period 1 July 2023 to 30 July 2023 Item Code 650 - Inventory-Accessories A1002 Sunglasses A1003 A1001 Total 650 - Inventory- Accessories C1002 C1001 660 - Inventory-Clothing C1003 Shorts C1004 Item Name Total 660 - Inventory- Clothing 1 Setup Guide Hats Backpacks Pants Tops Jumper ? Opening Balance Purchases 5,400.00 3,675.00 6,875.00 15,950.00 3,600.00 4,400.00 3,000.00 COGS 3,000.00 2,625.00 5,125.00 10,750.00 1,620.00 4,400.00 1,200.00 5,500.00 4,510.00 16,500.00 11,730.00 32,450.00 22,480.00 Adjustments Closing Balance 2,400.00 Sales 1,050.00 10,000.00 11,250.00 8,250.00 1,800.00 1,750.00 20,705.00 15,580.00 1,980.00 2,430.00 990.00 5,200.00 41,955.00 31,205.00 Profit 1,800.00 7,375.00 6,765.00 6,600.00 2,200.00 9,970.00 59,550.00 810.00 600.00 2,255.00 4,770.00 17,595.00 5,865.00 37,070.00 Quantity Purchased 450 350 550 1350 200 200 150 250 800 2150 Quantity Sold 250 250 410 910 90 60 205 555 Inventory Type 1465 Tracked 200 Tracked Tracked Tracked Tracked Tracked Tracked Sales Account 240 - Sales- Accecories 240 - Sales- Accecories 240 - Sales- Accecories 240 - Sales- Accecories 250 - Sales- clothing 250 - Sales- clothing 250 - Sales- clothing

Answer rating: 100% (QA)

Executive Summary BM July 2023 Performance 1 Advantages of Xero for BM Using an accounting information system like Xero can provide significant advantages for BM especially in its early stages Improve... View the full answer